Updated Aug 30, 2024
8/30/24
A five-day losing streak has sent September natural gas futures below the $2/MMBtu level for the first time since early August, but bulls might get breathing room after the contract rolls off the board Wednesday.
Coming off a slump the week before, natural gas futures extended their losing ways through early afternoon trading on Monday. Market participants fixated on early signs of fall weather and robust supplies. Near-term heat, however, propelled cash prices.
Bears maintained control in the week’s closing session as natural gas futures fell deeper amid growing concerns that mild weather would ease demand and limit the ability to wear away a hefty storage surplus.
September Nymex natural gas futures careened lower Friday as the market focused on milder weather forecasts over an improved pace of storage tightening signaled by the latest inventory report.
Natural gas forward prices maintained a bearish tenor in parts of Texas and the West, but an atypical summer storage withdrawal and increased focus on the approaching winter cast a bullish hue elsewhere to send prices broadly higher.
Natural gas futures were down in early trading Friday as the market shifted its attention away from Thursday’s bullish storage print to moderating summer heat next week.
Natural gas forward prices maintained a bearish tenor in parts of Texas and the West, but an atypical summer storage withdrawal and increased focus on the approaching winter cast a bullish hue elsewhere to send prices broadly higher.
Natural gas futures pushed higher Thursday after the U.S. Energy Information Administration (EIA) reported a rare summer withdrawal of 6 Bcf from storage for the week ended Aug. 9.
While the market remains flush with supply, signs of favorable fundamental shifts caught the attention of money managers and powered a natural gas futures rally that spanned most of last week and through early afternoon trading Monday.
The pummeling continued in natural gas futures, with technicals suggesting additional losses amid a dearth of fodder to nourish the bulls. However, after controlling the market for six weeks, bears could be losing steam, opening the door for the bulls to run.